GS Paper 2
Syllabus: E-Governance
Source: TH
Context: Recent Moody’s report highlights issues with India’s digital ID program.
What is Aadhar?
Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to Indian residents. It serves as proof of identity and address and is linked to an individual’s biometric and demographic information. It has revolutionized service delivery by simplifying access to government services and benefits, eliminating intermediaries, and plugging leaks into government programs.
Concerns Highlighted by Moody’s Report:
| Concerns | Details |
| Privacy and Security Concerns | Aadhaar’s concentration of sensitive information with specific entities increases data breach risks (privacy and security risks) |
| Biometric Authentication Concerns | The adoption of Aadhaar for welfare scheme payouts like MGNREGA hinders effective implementation. |
| Concerns about Aadhaar’s biometric reliability and the burden of establishing authorization. | |
| Concerns Related to Service Denials | Service denials are common, especially for manual labourers in hot, humid climates. |
| Moody’s Recommendation | Moody’s suggests decentralized ID systems like digital wallets with blockchain capabilities for more user control and reduced fraud. |
Government’s Stand:
| Government’s Response | Details |
| Aad haar’s biometric system is reliable, safe and secure | |
| Recognition by International Agencies | The government pointed out that international agencies like the IMF and the World Bank have praised Aadhaar. |
| Several nations have engaged with UIDAI to explore deploying similar digital ID systems. | |
| Facilitation of Schemes like MGNREGA | The government highlighted that Aadhaar seeding in MGNREGS is done without biometric authentication, addressing concerns raised in the report. |
Other issues with the Aadhar system (*not in the report):
Systemic Flaws and Data Breaches:
| Issue | Details |
| Inadequate Facilities | Limited facilities for enrolling, updating, and retrieving Aadhaar details. |
| Elderly, disabled, and illiterate individuals face challenges with online grievance systems. | |
| Lack of Alternatives | Lack of acceptable alternatives for identity verification when Aadhaar fails. |
| Leads to an ‘either Aadhaar or no benefits’ situation. | |
| Lack of Archiving Policy | Some citizens are blocked from government services despite having valid Aadhaar cards and numbers. |
| CAG audit report highlights issues with data archiving policy and data management. | |
| Lack of Adequate Security | UIDAI’s devices and applications may not securely store residents’ personal information. |
| Concerns about the security of Aadhaar information used for digital verification by other agencies/companies. | |
| Misuse of the System | Informed consent was compromised in the Aadhaar Payment Bridge System and the Aadhaar-enabled Payment System (AePS). |
| Instances of corrupt business correspondents extorting money from people through AePS. | |
| Organized scams like the “scholarship scam” in Jharkhand reported. | |
| Biometric Database | Private companies are legally restricted from asking for Aadhaar, but UIDAI provides authentication services to banks and mobile carriers. |
| Businesses that should compensate the government for using Aadhaar are not disclosing the process to the public. |
Exclusion of Marginalized Sections:
| Issue | Details |
| Aadhaar-related Hassles | Inconvenience and problems faced by millions, especially disadvantaged groups, in accessing welfare schemes. |
| Excessive Imposition | Aadhaar is often required for benefits not originally mandated by the Supreme Court. |
| For instance, an Aadhaar is needed for basic rights like Anganwadi services or school enrolment. | |
| Arbitrary Exclusions | Governments withdraw or suspend benefits without warning or informing recipients of Aadhaar linkage issues. |
| Payment Problems | Pressure to link bank accounts with Aadhaar and the use of the Aadhaar Payment Bridge System cause payment issues. |
| Problems include delayed, rejected, diverted, and blocked payments, affecting NREGA, pensions, and maternity beneficiaries. |
Steps to be taken:
- The government must restrict mandatory Aadhaar to permissible purposes and must also provide viable alternatives when Aadhaar authentication fails.
- Benefits should not be withdrawn or suspended without prior notice. Concerned persons should be given an opportunity to respond or appeal.
- The UIDAI must ensure an easier enrolment, updation and retrieval of lost card processes to all, for free, at the block level or below, in a well-supervised public facility.
- A comprehensive review of the Aadhaar Payment Bridge System and direct benefit transfer systems is essential.
- RBI and NPCI should monitor all types of payment problems and place detailed monthly reports in the public domain.
- The NPCI should ensure stronger safeguards against the vulnerabilities of AePS and better grievance redressal
- Informed consent norms should be reviewed.
- The Aadhaar Act could be amended to reinstate the dropped provision for independent oversight of the UIDAI by a high-powered “Identity Review Committee.”
Conclusion
Given the above drawbacks and hassles, the accountability lies on the UIDAI to address the gaps and to facilitate realizing the true potential of the Aadhaar system.
Mains Links:
Two parallel-run schemes of the Government, viz the Adhaar Card and National Population Register (NPR), one as voluntary and the other as compulsory have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need to run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (UPSC 2014)
Prelims Links:
Q 1. With reference to “Blockchain Technology”, consider the following statements: (UPSC 2020)
- It is a public ledger that everyone can inspect, but which no single user controls.
- The structure and design of the blockchain are such that all the data in it are about cryptocurrency only.
- Applications that depend on basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1 and 3 only
Ans: D
